Founded in 1979, Ken Fisher’s Fisher Asset Management is an independent, privately-owned money management firm with tens of billions of dollars in assets under management (AUM). According to the latest reports the fund oversees some $54 billion in AUM, of which around $50 billion is allocated to the firm’s public equity holdings. According to the official website of the fund, Fisher’s clients include over 150 large institutions and over 27,000 high net worth individuals. It is interesting that Fisher has written the Forbes “Portfolio Strategy” column for 30 years, and has authored several New York Times bestsellers on finance and investing. We just cannot pass by such a bright mind in the investment space, and would like to offer you a closer look at the top smid-cap equity picks of the firm (companies with a market cap of between $5 billion and $10 billion), represented by Domino’s Pizza Inc (NYSE:DPZ), East West Bancorp Inc (NASDAQ:EWBC) and SVB Financial Group (NASDAQ:SIVB) and how they performed recently.
We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular stock picks in real time since the end of August 2012. These stocks have returned 123.1% since then and outperformed the S&P 500 Index by around 66.7 percentage points (see the details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.
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First up is SVB Financial Group (NASDAQ:SIVB), in which Fisher Asset Management held 1.45 million shares worth some $209.47 million. During the second quarter of 2015 the stock has returned around 13.33%, lifting the total year-to-date gains to 28.58%. Still, analysts believe that there is 14.19% upside potential remaining from the $144.39 where the stock is traded today. Robert Pohly‘s Samlyn Capital owned around 523,500 shares of SVB Financial Group (NASDAQ:SIVB) worth $66.51 million after the first three months of the year.